Despite beating expectations for United States inflation data, Bitcoin (BTC) remained rangebound at the Wall Street open on July 28. The Personal Consumption Expenditures (PCE) Index print came in below estimates, indicating a continued decline in U.S. inflation. The PCE Index is considered the Federal Reserve’s “preferred” inflation metric, as previously mentioned by Chair Jerome Powell. Analysts suggest that the Fed may finally have inflation under control.
However, Bitcoin showed little response to these developments, maintaining a price range between $29,000 and $29,500. The resistance level of $30,000 has remained unbroken for over a week, and some traders anticipate further downside for BTC. Popular trader Crypto Tony expressed his belief that Bitcoin will drop to $28,000 in the near future, although he acknowledged the possibility of a consolidation period beforehand. Fellow trader Daan Crypto Trades also emphasized the loss of the local range concentrated around $30,000 and suggested preparing for a decline to the low $28,000s.
Michaël van de Poppe, the founder and CEO of trading firm Eight, identified a “deviation” on the daily BTC/USD chart, similar to one observed in February that was followed by an upward rebound. He speculated that this deviation could lead to a classic comeback for Bitcoin. Van de Poppe also noted that the weekend, with its thinner liquidity and greater potential for volatile movements, could contribute to this scenario.
The lack of significant price movement in Bitcoin despite positive inflation data and the Federal Reserve’s efforts to control inflation indicates an ongoing lack of bullish sentiment in the market. Traders remain cautious and anticipate further downside for BTC, with the $30,000 resistance level acting as a significant barrier. However, some analysts, such as Van de Poppe, are still hopeful for a potential rebound in the near future.
It is important to note that this news article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment decisions.
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